The continuity of inhabitation at the area of Grebaštica exists at least from the Roman times, evidence of which are numerous remains of the Roman architecture (architraves, consoles) and the remains of the Roman road not far from the St. Mary parish church. The remains of Roman buildings are found on the locality of the monastery St. Luce and Konjušine. It is assumed that the ruins of the massive walls on the western side of the graveyard belong to a Roman courthouse. Several pillars and the lid of a Roman sarcophagus are located on the graveyard near the Saint Mary church and the St. Peter chapel.

The first time that Grebaštica was mentioned in a written document, was in 1298 as "Grebac". The Šibenik bishopric was established in the same year, so the town council abandoned their possessions in Grebaštica. Within the year 1298, Grebaštica became rectory and got jurisdiction over the neighbouring villages. The glagolic priests were head of the parish, which speaks of the continuity of faith in the Croatian language (at that time the official language was Latin and only a few parishes had this privilege). Apart from the church, the aristocracy of Šibenik had its possessions in this area. The aristocratic family Čudimirović had the church St. Peter (the smaller church added to the church St. Mary) built. The Čudimirović family, together with another eleven Croatian aristocratic families, ratified in 1102 an agreement with the Hungarian government on the establishment of a common state. Inside the St. Peter church , the Venetian Antonio Busato, one of the builders of the cathedral in Šibenik, made a statue of the patron for the lunette of the portal. Near the church there is also an inscription dating from the year 1434, which is when Busato worked on the cathedral in Šibenik, after his return from Venice, where he worked on the Ducal Palace.

Many pillars and graves were found around the church of St. Mary, which is specific for the Croatian culture in the middle age. There are many medieval graves southwest from the church as well, which means that the monastery of St. Lucia existed at that locality. Though there were no archaeological excavations which would confirm this, there is a legend of a treasure hidden underneath the ruins of the monastery.

The St. Mary church was built in 1668 on the same base of an older church, destroyed at end of the 15th / begin of the 16th century by the Turk invasion on Dalmatia. For the purpose of defence, the local people built a wall called "BEDEM" on the peninsula Oštrica, which is about 10 m high and 1 m wide, now a common symbol for this area. The construction began at the end of the 15th century. Later, the inhabitants of Grebaštica and the neighbouring villages built a church called St. Spirit, possibly as a sacrament church in gratitude to God, who saved them from the Turkish attacker.

Yet, the war left its traces: the inhabitants fled temporarily to neighbouring islands and protected areas behind walls. A part of the inhabitants emigrated forever. That is why Grebaštica lost its influence and was annexed to the district Krapanj until the end of the 19th century. But its advantageous geographic position, on the slopes of the surrounding hills and its closeness to the sea, as well as the existence of drinking water, which is a wealth in these karstic areas, always attracted people. The spring known as "Kanela", is particularly appreciated: its reconstitution in 1930 was accompanied by an appropriate memorial.

The economic issues of Grebaštica are marked by Mediterranean agriculture: wine, figs, fishing, farming and above all - olives.